Gold Technical Report: Gold prices rested a bit yesterday after an upmove for the three straight sessions earlier. It had closed above 10 days EMA @ 1924 on Friday, and on Monday closed above the conjunction point of 50 days EMA and 100 days EMA near 1928. Major support is near 200 days EMA @ 1915 and major resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 88 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 54 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also traded with negative bias after 2 days of upwards move on second day. It opened and traded throuout above the 200 days EMA @ 23.06 and closed above 10 days EMA @ 23.16. Next target is near 23.45 where 51 days EMA and 100 days EMA are at conjuction point. The Short term Stochastics Oscillator is at 34 and Relative Strength Index near 46.
Fundamental Report: The Federal Reserve will conclude the September FOMC on Wednesday. The meeting will be capped with a new policy statement and interest rate decision and a press conference by Chairman Powell. The Fed is not expected to raise interest rates according to the CME’s FedWatch tool, there is a 99% probability that the Fed will not raise their benchmark (Fed funds) rate. Nonetheless, investors will be able to gain insight into the internal thinking of Federal Reserve members in addition to Powell’s press conference tomorrow’s statement will include the Fed’s upcoming forecast in the Summary of Economic Projections or “dot plot. Every three months since January 2012 the Federal Reserve has updated its “dot plot”. This document provides analysts and investors with the Federal Reserve’s economic forecast for the current year as well as two years ahead. In June the Federal Reserve announced a pause in interest rate hikes. However, the quarterly economic projections that accompanied that decision revealed that 12 out of the 18 voting members anticipated two more ¼% rate increases by the end of this year.